Zara swott Essay

Shoot Analysis Strengths: Sara’s product is very fashionable due to the strong team of design and there is a strict control over the supply chain since design till produce and deliver, which the company will ensure that it meets the customers’ satisfaction at the end. Sara’s product cycle is much better than competitors, the brand is able to come up with the new design in very short amount of time and have finish goods ready in store within 24-48 hours.

Ezra produces up to 11,000 items per year while its competitors produce only 2,000 items approximately, this ability able Ezra to replace undesirable goods with the preferred one in short notice. According to the short product life-cycle strategy, Ezra create the sense of scarcity, which lead to the customer’s awareness about purchasing the goods right away after it is launched. The finding shows that Ezra shopper visits the chain 17 times a year compared with 3-4 times a year for Ezra competitors and their customer. Furthermore, Ezra is designed to be one stop shop.

The customer can enjoy the variety of the product available for every generation and activity. The location for the shops is located in a prime area where the

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brand can meet the target customer group and attract new purchasers at the same time. In addition, Factor that help Ezra fascinate consumer is how it displays its product. Impressive layout and attractive window display are ones of Sara’s strength. Weakness Ezra has been invested a large amount of money on research and development in order to monitor fashion trend, analyze and predict what is coming next attraction.

The company has centralize distribution center only in Spain, therefore Ezra must invest heavily on logistic to delivery the fashionable goods in fast manner. Plus, any weather, labor or terrorist disruption to the area will affect the sales revenue directly and significantly. Another weakness of Ezra is that the budget for marketing is relative low at only . 3% of its revenue compare to its competitor. Nevertheless, Ezra has less strategy stress on promotion and online presentation. Opportunity: Advertising and promotion campaign will help Ezra capture large amount of new costumer from all over the world.

E-commerce or selling product online will offer the rand an addition growth and expand the market worldwide. Another great opportunity for Ezra to make more profit is to expand the market in United States where there is a large capacity to consume. Having more stores or even a distribution center in USA might be the best solution for the company growth. Concentrating on the emerging market is also interesting, especially in Asia where considered a 2nd large market share for Ezra. Threat: Sara’s direct competitor is H&M whose strategy is focusing on mass market with a cheaper price and more available products in stock.

Moreover, H and M dose invest a lot more on advertising campaign compare to Ezra. Advertising, however, still an effective way to attract new customer who unaware of the brand existence. Nevertheless, Ezra production process and manufacture are located in Spain where Ezra shoot By that production is occurred elsewhere is Asia. Trend: Ezra performance in 2012 is considered very good. The sales revenue increased by 18% due to the expansion of the market into 5 new region which are USA, Macedonia, Bosnia, Ecuador and Georgia.

Ezra did invest heavily on logistic, 450 lion Euro, since delivering the products quickly to the stores worldwide is the key to success of the brand. In 2013, Sara’s plan is to expand online market in china, Canada and Russia and to the rest of region later on. Furthermore, Sara’s strategy is to open a many more store in Asia where considered as 2nd most important market for the company after the Europe market. Gross domestic product (GAP) is a value of the final goods and services produced with in a country in a given period of time.